As for the current home, converting a bonus room into a real bedroom could enhance its rental appeal and value, depending on local demand for larger rental units.Paying Off the Mortgage vs.

You definitely need to do homework on local restrictions.   

My thoughts are those types of properties are better for local investors who can check on the properties, know how to do some of their own repairs or are very experienced investors who know what they're doing. 

Check with your local laws, in CA where I am .

Are you looking for official businesses, or more local mom-and-pop Property Managers?

One thing I'm struggling with however is my ability to really understand the local markets in some of the areas I've been targeting.Among a couple areas, I think Watsessing Ave in Bloomfield has great transit, appropriately priced properties (cash flow opportunities), and there seems to be some serious development happening (new supermarket and luxury apts just finishing a short walk east of the Watsessing Ave station).I've driven many of the streets and seen a few properties in the area to get a feel.  

@Shannon L Fogarty I’m personally a fan of working with local lenders who know all the nuances of their market and how to get deals done.

I would recommend heading out to your local meetups to meet other investors.

I appreciate your insights.1% Rule: I agree, getting $4500 in rent for the new unit might be challenging, especially given the local market trends.

It's a local meet up that takes place on the third Wednesday of the month.